Debt obligations manageable with planned rollovers for FY25: SBP governor

WEB DESK: The State Bank of Pakistan (SBP) Governor Jameel Ahmad said that friendly countries are set to roll over more than $16 billion of Pakistan’s outstanding debt for the fiscal year 2025, easing the government’s financial pressures.

In his testimony before the National Assembly Standing Committee on Finance and Revenue, chaired by MNA Naveed Qamar, Ahmad revealed that Pakistan’s total debt for FY25 stands at $26.2 billion.

After the rollovers, the debt to be repaid by June next year will drop to $10 billion. The central bank has already settled $1.5 billion in debt last month, leaving $8.5 billion for the remainder of the fiscal year.

Finance Secretary Imdad Ullah Bosal added that Pakistan will receive its first tranche from the International Monetary Fund (IMF) following the rollover of about $4 billion in Chinese commercial loans. Additionally, $4.4 billion is expected from the Asian Development Bank and the World Bank.

Ahmad also stated that there is no immediate pressure on external payments, which should help maintain the stability of the Pakistani rupee.

He projected foreign exchange reserves could reach $13 billion by year-end and hinted at possible reductions in the policy rate. However, he cautioned that inflation could rise to 13.5% this fiscal year due to budgetary and energy price factors.

Ahmad outlined a five-year plan focusing on price stability, managing the current account deficit, ensuring reserves cover three months of imports, and enhancing financial transparency. He also emphasised the need to boost exports by 10 to 15% and assured no restrictions on imports.

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